BAE Systems to Eliminate 1,005 Jobs

Published 7:00 pm, Monday, March 17, 2003

BAE Systems PLC, Britain's biggest aerospace and defense company, said Tuesday it was cutting 1,005 jobs in its aircraft-related businesses because of problems with one of its projects.

BAE, which employs 100,000 people worldwide, blamed the cuts on delays to its program to supply the Ministry of Defense with Nimrod maritime surveillance aircraft. It also blamed a downturn in the civil aviation industry and the forthcoming completion of several other projects.

The job cuts will affect four plants across Britain, where it employs 55,000.

Last month, BAE reported a loss of 686 million pounds ($1.1 billion) in 2002, blaming cost overruns on the Nimrod project. It also said it was suspending production work on the aircraft because designs were not ready.

In January, the company said it was cutting 1,000 jobs in its shipbuilding division because of a "very significant drop" in business at its shipyards.